self cheque
Self-cheque-Normally, It is seen that some Cheque books issued by the bank already have bearer cheques or order cheques. Because you will see a word written on the cheque “or bearer”, “or order”. These words define a cheque as a bearer cheque or an order cheque that can be used for payment to someone but is not safe. These cheques are called Self-cheques when you issue a cheque to yourself by writing the payee’s name as self for withdrawing cash from the bank.
In simple words, a Self-cheque is a cheque that is not crossed and it is a bearer cheque. It is used by the issuer to withdraw money from their bank account.
Contents of this post
A Self cheque is basically a cheque issued to the self for withdrawing cash from the bank account. This cheque can be encashed at the cheque issuer bank only. The payee’s name will be written as Self. It is used by the issuer for withdrawing cash from his bank account.
You can identify self-cheques by the word ‘self’ written in the drawee column. Self-cheques can only be drawn at the issuer’s bank.
These are the feature of the Self-cheques
These are the simple steps to know how to write a Self cheque-
To write a self cheque in India, you can follow these simple steps:
It’s essential to ensure the security of your cheques and keep them in a safe place to prevent unauthorized access and misuse.
points | Self-cheque | crossed cheque |
---|---|---|
Meaning | A self-cheque is one payable to the self or holder who carries and presents the cheque at the bank counter and gets the cash. | A crossed cheque is a cheque payable only in the bank account of the person named on the cheque or endorsed third person. |
Identification word | A “Self” word in the place of the Payee name. | Two parallel lines on the top left corner or anywhere on the cheque is called crossed cheque. |
Encashment | Any person can encash the cheque. And any person holding or carrying the cheque. | Only the payee can deposit the cheque into his bank account. No encashment is allowed. |
Receipt | The recipient’s signature acts as a receipt itself. A drawer signature is also required on the backside of the cheque. | The signature of the payee on the cheque acts as an endorsement only. |
Banker’s Responsibility for payment of funds to the wrong person | No responsibility of the banker or drawee. | The banker or drawee will be held responsible. |
Conversion | Self-cheque is not convertible. | Crossed cheque can be converted into an A/c payee cheque. |
If you want to be secure from fraud or misuse of cheques then you should not provide a self-cheque to your suppliers at any time. You should check always the word mentioned over the cheque ” or Bearer” or order and must strike out “or Bearer, or order”. You should always provide an A/c Payee cheque or crossed cheque. You should not provide this cheque because it is used to withdraw cash by yourself or someone else for you.
These are the persons who can get the amount mentioned over the Self-cheque-
Normally, a cheque will be valid up to three months from the date mentioned over the open cheque. Hence after three months from the date on the cheque, it will be invalid and can not be encashed.
If any cash transaction, such as a deposit or withdrawal, is done at a non-home branch, a fee is levied. This fee varies across banks. Also, some banks charge even if a third party makes a cash transaction. But now some banks are centralized hence from any branch you can operate your deposit and withdraw.
You should visit your bank branch to withdraw cash by self-cheque.
If it is a Self-cheque
A cheque will be a Self-cheque when the word ” self ” is mentioned in the place of the payee’s name in the cheque. And it is not crossed.
There are many types of cheques that you need to understand. Here is the link for the different types of cheques provided plz go through and read- the types of cheques
No, the drawer of the cheque or any third person can encash it by visiting the drawer bank branch only. Because this cheque is only for cash withdrawal.
Yes, Self-cheque can be transferred to the third person by simple delivery. The drawer needs to sign the cheque on the backside also if given to any third person for getting cash.
No, It is not safe compared to a crossed or account payee cheque. Because account payee cheques can be deposited into the account of the named person only. And it can not be encashed. But the self-cheque is for withdrawing cash from the bank by himself or any other person.
Yes, Cash can be withdrawn because the Self-check means a cheque issued to self for encashment of the amount from his account.
Most banks in India have set a limit of INR 1 lakh on Cash withdrawal limit from banks per day by cheque. This limit typically applies to self-use or self-addressed cheques.
it’s not mandatory to sign behind the cheque. but may be required by the bank to check the payee’s identity.
You need to write a self-cheque to withdraw cash from your bank account or transfer money to another account you own, such as a savings account.
An Accountant, GSTP, GST blogger, Website Creator, SEO Builder & Co-founder of the website https://gstportalindia.in for the help of GST Taxpayers of India. Having a perfect accounting experience of more than 10 years in a Private Ltd Company.
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